Car Insurance Brokers

Find out what car insurance brokers are and how they work right here with Savvy.

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, updated on July 25th, 2023       

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Car Insurance Banner - Young couple smiling in a meeting with a car insurance broker

When it comes to securing the right car insurance for your vehicle, navigating through the range of options available can be overwhelming. As an Australian driver, you may have come across the term “car insurance brokers” during your search for coverage, but what exactly are they and how can they help you secure an insurance policy?

In Savvy’s comprehensive guide, you can explore the ins and outs of car insurance brokers in Australia, highlighting the benefits they offer and how they can simplify the insurance process for you.

What are car insurance brokers and what do they do?

Car insurance brokers are licensed professionals who act as intermediaries between insurance companies and customers like you. Their primary role is to assist you in finding the most suitable insurance coverage tailored to your specific needs and budget among their insurance partners.

Unlike insurance agents who work for specific insurance companies, brokers work independently and represent multiple insurance providers. This means they may have access to a wide range of insurance products from various companies, giving you more options to choose from.

Traditionally, car insurance brokers have operated out of offices and held face-to-face meetings with clients. However, in the age of technology and computers, many operate 100% online and simply act as a tool for you to compare partnered offers and complete the purchase of a particular car insurance product either via their website or your chosen insurer’s.

Do I have to pay to use a car insurance broker?

In many cases, you won’t have to pay a car insurance broker for their service. This is because most of their income will come from commissions paid by insurers for recommending their product, rather than being paid directly by you. Commission-based payment is the most common arrangement with online brokers.

However, there may be brokers who do charge fees to customers as compensation for their services and receive either a small or no commission, which may be the case with some in-person brokers. If they do charge fees, it’s important these are set out clearly for you so you understand what they are before buying the policy they prepare for you.

How do I find the right car insurance broker for my needs?

There are several factors to consider when choosing between traditional car insurance brokers. Keep the following in mind when determining who to go with:

  • Licensing and accreditation: ensure the car insurance broker you choose is licensed and accredited by the relevant regulatory authorities, which in Australia is an Australian Financial Services (AFS) licence.
  • Reputation and reviews: research the broker's reputation and read reviews from previous clients. Positive testimonials and feedback from satisfied customers are indicators of a reliable broker.
  • Range of insurers: check the number of insurance companies the broker represents. The more providers they work with, the better your chances are of finding the most competitive rates and comprehensive coverage.
  • Transparent fees: enquire about the broker's fees upfront to avoid any surprises later on. Reputable brokers are transparent about their fees and commission structures and will disclose this to you.

The pros and cons of traditional car insurance brokers


Have the work done for you

Instead of going out and taking the time to survey the market yourself, your car insurance broker can do all the comparing and arrange the policy purchase for you.

Potentially free service

In many cases, you won’t have to pay to use a car insurance broker, essentially providing you with a free comparison and advice service to help you lock in a better deal.

Expertise in the industry

Because brokers are experts with industry connections, they may be able to negotiate a better deal with an insurer on your behalf than you’d be able to get on your own.


Fees may be charged

Although many don’t charge fees, some do, so it’s important to clearly understand what these are and how much they’ll set you back overall.

May take more time

Visiting a broker in person and waiting for them to conduct their process for you may end up taking more time than comparing options yourself, such as with an online broker.

Not all options available

Brokers are partnered with a limited number of insurers, meaning even if their panel is wide and diverse, you won’t be seeing all the potential deals available to you.

Frequently asked personal loan questions

Do I have to buy the policy my car insurance broker finds for me?

No – there’s no obligation for you to go through with the policy purchase if the deal your broker finds for you isn’t quite what you’re looking for. You may wish to do your own comparison on top of your broker’s to see if there are other better deals not included in their panel of partners.

Does car insurance bought through a broker cost more?

Not necessarily – however, the cost of your policy will ultimately depend on the deal your broker can negotiate for you and whether you have to pay any fees as part of this process.

Will my car insurance broker assist me in the claims process?

Some traditional brokers can help you through a car insurance claim, such as looking over your claim, lodging it for you and utilising their relationships with insurers to hopefully ensure an efficient process. However, this typically isn’t the case if you decide to buy through an online broker.

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Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.

Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.